MedTech company and industry leaders gathered at the MedTech 2024 Summit, one of the largest global events in the medical technology industry, on 15-17 October. Key market experts set positive tones for the future of the medical equipment market in China.
According to GlobalData analysis, while the global medical equipment market is forecast to grow at a compound annual growth rate (CAGR) of 4.2% through 2033, China’s medical equipment market is expected to grow at a faster CAGR of 5.0% during the same period. . The main drivers for the growth of China’s medical equipment market include the country’s aging population, the increasing number of chronic conditions, the increasing penetration of medical equipment at all levels of healthcare, and the growth of China’s health insurance coverage.
The overall economic slowdown in China has resulted in a tight budget for health care costs. This financial stress may have a negative impact on the growth of the medical device market as hospitals and healthcare facilities struggle to manage costs. Although volume-based purchasing (VBP) aims to improve efficiency and reduce costs in healthcare applications, it poses challenges for manufacturers that may affect the long-term landscape of the medical equipment market in China. Global supply chain problems, exacerbated by regional tensions and the Covid-19 pandemic, are hampering production and distribution. Additionally, China’s growing protectionist policies are aimed at strengthening its domestic medical device industry, which poses challenges to multinational companies.
Multinational companies need to consider different strategies to reduce operating costs and offer affordable products in China. It is important to emphasize the total value of products rather than just their price. Highlighting high quality, reliability, and after-sales support can differentiate products from the competitive landscape. Additionally, multinational companies can partner with local companies or distributors to improve their market knowledge, navigate regulatory areas, and improve access to purchasing opportunities. Flexible pricing models that can adapt to different purchasing requirements and consumer preferences can also be developed, ensuring competition in various segments.
“China’s medtech market set to grow strongly despite headwinds” was originally created and published by Medical Device Network, a product owned by GlobalData.
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